TLDR
- Elon Musk said SpaceX closed $40 billion in debt financing to buy Nvidia GPUs, due in the first half of 2027.
- SPCX stock traded up about 1% after hours on Sunday, near $147.
- Bloomberg reported the deal had not yet been priced, and talks were still ongoing late Sunday.
- Q3 revenue rose 161% to $14.58 billion, while capital spending nearly tripled to $19.6 billion.
- Musk predicted more than 200 “neocloud” firms could fail or merge as debt markets tighten.
Elon Musk said on Sunday that SpaceX (SPCX) has closed $40 billion in debt financing to buy graphics processing units. SPCX stock rose about 1% in after-hours trading, a gain of $1.06, to around $147.
Space Exploration Technologies Corp., SPCX
Musk posted the news on X. He said the company is investment grade and earns revenue from Starlink and rocket launches.
Pretty much.
As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers.
SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch…
— Elon Musk (@elonmusk) October 25, 2026
In a follow-up post, he said the debt is mostly callable debt tied to the GPUs. The chips are expected to arrive in the first and second quarters of 2027.
There is a catch. Bloomberg reported that pricing talks were still going late Sunday in New York. The deal had not yet been priced, and the parties were working to finalize the package in the coming days.
How the Deal Is Built
Bloomberg said the plan uses a special purpose vehicle. That keeps the debt off SpaceX’s balance sheet and helps protect its investment-grade ratings.
Goldman Sachs was reported to be leading talks with investors. Apollo Global Management was among the firms involved.
Musk said the debt is being structured as private bonds issued by an off-balance-sheet entity. On the balance sheet effect, he wrote that it was “not a major factor this quarter.”
Reuters reported earlier this month that SpaceX was talking to banks and asset managers about raising the $40 billion. The money is meant for Nvidia (NVDA) chips.
Spending Is Climbing Fast
SpaceX has pushed hard into AI this year. It calls the business “Super Intelligence,” or SI.
That unit is now the company’s largest. Third-quarter SI revenue rose ninefold to $7.56 billion from $813 million a year earlier.
Total revenue grew 161% to $14.58 billion. Starlink ended September with 13.6 million consumer subscribers, and enterprise and government revenue rose 91%.
The costs are rising too. Capital spending nearly tripled to $19.6 billion in the third quarter. The company expects $35 billion to $40 billion in the fourth quarter as new computing sites open.
SpaceX is also working with Tesla (TSLA) on Terafab, a chip plant. The first test chip is targeted for May or June 2027, with volume production planned for the third quarter of 2028.
Musk Sees Trouble for Smaller Players
Musk also had a warning for smaller AI cloud companies. He said debt markets have almost stopped lending to firms without major revenue outside AI data centers.
“That means the 200+ neoclouds are going to see guppy-level death and consolidation,” he wrote. “Some will make it through, but not many.”
Neocloud firms rent computing power to AI developers and other clients. Many borrow money to buy GPUs and grow their services.
Wall Street is upbeat on SPCX. The stock has a Strong Buy consensus from 29 Buy ratings, five Holds and one Sell over the past three months.
The average price target is $250, which implies about 70% upside from current levels. Bloomberg said the final pricing of the debt package could come in the coming days.
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